WASHINGTON, Dec. 16, 2015 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its eleventh Multifamily DUS® REMIC in 2015 totaling $1.17 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on December 11, 2015.
"Our December deal featured 96 of our ARM 7-6™ (i.e., 7-year loan with 6% lifetime interest rate cap) loans in group 2 – approximately $637 million in collateral. This is a great product for both borrowers and investors," said Josh Seiff, Fannie Mae's Vice President of Capital Markets and Trading. "The ARM 7-6 provides borrowers with the flexibility of floating rate funding along with the protection of an embedded interest rate cap – making it accessible to a much broader range of multifamily borrowers. Investors have the opportunity to invest in a much more diversified pool of floating rate bonds – the average loan size is less than $7 million – at an attractive spread."
All classes of FNA 2015-M17 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. The structure details for the multi-tranche offering are in the table below:
Class | Original Face | Weighted Average Life | Coupon (%) | Coupon Type | Spread | Offered Price |
FA1 | $108,891,675 | 6.31 | 1.260 | Floater/AFC | Not Offered | Not Offered |
FA | $637,627,053 | 5.99 | 1.129 | Floater/AFC | 100 DM | 99.51 |
FX | $637,627,053 | 6.00 | 0.108 | WAC IO | Not Offered | Not Offered |
A1 | $57,982,000 | 5.66 | 2.520 | Fixed | S+65 | 101.00 |
A2 | $363,116,807 | 9.73 | 3.038 | WAC | S+89 | 100.23 |
X3 | $421,098,807 | 9.17 | 0.071 | WAC IO | Not Offered | Not Offered |
Total | $1,167,617,535 |
Group 1 Collateral | |
UPB: | $108,891,675 |
Collateral: | 13 Fannie Mae DUS Capped 7-4 ARMs |
Geographic Distribution: | CO (33.5%), FL (22.3%), TX (16.9%) |
Weighted Average | |
Debt Service Coverage Ratio (DSCR): | 2.42x |
Weighted Average | |
Loan-to-Value (LTV): | 74.1% |
Group 2 Collateral | |
UPB: | $637,627,053 |
Collateral: | 96 Fannie Mae DUS Capped 7-6 ARMs |
Geographic Distribution: | TX (37.5%), CA (8.3%), TN (7.4%) |
Weighted Average | |
Debt Service Coverage Ratio (DSCR): | 2.41x |
Weighted Average | |
Loan-to-Value (LTV): | 70.4% |
Group 3 Collateral | |
UPB: | $421,098,807 |
Collateral: | 53 Fannie Mae DUS MBS |
Geographic Distribution: | TX (21.1%), FL (17.0%), CO (9.9%) |
Weighted Average | |
Debt Service Coverage Ratio (DSCR): | 1.73x |
Weighted Average | |
Loan-to-Value (LTV): | 69.9% |
Settlement Date: | December 30, 2015 |
Lead Manager: | Goldman, Sachs & Co. |
Co-Managers: | Morgan Stanley |
Amherst Pierpont Securities | |
Great Pacific Securities |
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2015-M17) available on the Fannie Mae GeMS Archive page on www.fanniemae.com.
Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission ("SEC") available on the Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.
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SOURCE Fannie Mae
